Loan

Wear rates updated monthly

Usury rates are rates beyond which a bank cannot lend money, depending on the terms of the loans. Previously, they were set by the Banque de France at the end of each quarter for the following quarter, on the basis of the average rates (including borrower's insurance, application fees, etc.) charged during the previous quarter by the banks, then increased by a third. When credit rates rise rapidly, as happened last year, this lag leads to many loan refusals, because the files exceed the rates of wear in force. Since February, they are now reviewed every month, and no longer every quarter, on the basis of the average of the rates applied during the previous three months. Something to bring a breath of fresh air to the mortgage market. Indeed, with a wear rate at 3.79% in February for loans over 20 years and more (compared to 3.57% with a quarterly update), more people should be able to borrow and carry out their real estate project. Namely, this new method of calculation only applies until July 1.